Johnson Controls and Tyco merger final
CORK, Ireland—Johnson Controls this week completed its merger with Tyco, marking a historic turning point for both companies.
By uniting Johnson Controls, a provider of building efficiency solutions, with Tyco, a provider of fire and security solutions, the new company offers a comprehensive portfolio of products, technologies and integrated solutions for the buildings and energy sectors.
"We are more than just two businesses that have come together—we are now one team uniquely positioned to create value," Alex Molinaroli, Johnson Controls chairman and CEO, said in the announcement. "Our combined insights and world class technologies will help build even smarter, more secure and more sustainable environments that help our customers win and broadly move the world forward."
As a result of the robust integration planning already in place, the company is on track to realize $1 billion of savings related to previously announced merger synergies and productivity initiatives.
"In addition to identifying significant synergies and improvements, our integration teams put us in position to complete the merger a month ahead of schedule so we can hit the ground running and realize the value of the merger for customers and shareholders,” George R. Oliver, Johnson Controls president and COO said in a prepared statement. "We are ready to integrate the skill sets and capabilities of both companies and develop solutions to meet our customers' needs in ways neither company could on its own."
With $30 billion in revenue and 117,000 employees (following the anticipated spinoff of the Adient automotive business in October), this powerful combination can now provide product, technology and service capabilities across controls, fire, security, HVAC and energy storage, to serve the full spectrum of end markets including large institutions, government, commercial buildings, retail, industrial, small business and residential.
Tyco and Johnson Controls' buildings platforms create immediate opportunities for growth through cross-selling, complementary branch and distribution channel networks, and expanded global reach for established businesses.
Longer term, the company is positioned to drive new innovations in technology and business models to support the smart buildings, campuses and cities of the future as well as building upon strategic, high value-added services driven by data analytics and connectivity like the Retail Solutions and Connected Services businesses.
Johnson Controls also will have one of the largest energy storage platforms with capabilities spanning the technology spectrum to serve an expanding global energy storage market.